AMBS WACC - Weighted Average Cost of Capital
The WACC of Amarantus Bioscience Holdings Inc (AMBS) is 5.1%.
| Range | Selected | |
| Cost of equity | 44558.9% - 97764.0% | 71161.45% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.6% - 5.6% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 9685.89 | 17456.99 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 44558.9% | 97764.0% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 49348.63 | 49348.63 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.6% | 5.6% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AMBS | Amarantus Bioscience Holdings Inc | 49348.63 | 100.3 | 0 |
| ARNI | Arno Therapeutics Inc | 425.09 | 1.17 | 0 |
| BIEI | Premier Biomedical Inc | 0.22 | 0.25 | 0.22 |
| CAPS | Capstone Therapeutics Corp | 0.39 | 1.17 | 0.91 |
| HSTC | HST Global Inc | 0 | 0.78 | 0.78 |
| IMUC | ImmunoCellular Therapeutics Ltd | 0.24 | 0.81 | 0.69 |
| NSPX | Inspyr Therapeutics Inc | 2.77 | 1.09 | 0.36 |
| NSTM | Novelstem International Corp | 4.15 | 1.73 | 0.43 |
| OBMP | OncBioMune Pharmaceuticals Inc | 0 | 1.09 | 1.09 |
| PAS.V | Pascal Biosciences Inc | 0.25 | 1.57 | 1.33 |
| PPCB | Propanc Biopharma Inc | 0.02 | -1.48 | -1.46 |
| Low | High | |
| Unlevered beta | 0.36 | 0.69 |
| Relevered beta | 14456.06 | 26054.72 |
| Adjusted relevered beta | 9685.89 | 17456.99 |
AMBS's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for AMBS:
cost_of_equity (71,161.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (9685.89) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.